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About our Newsletter: Denbury Aware
This newsletter entitled “Aware” is one of various efforts to improve our on-going dialogue regarding our operations, as well as our pipeline safety and emergency response procedures with the public safety community. Our intent is that this newsletter be informative and demonstrative of our commitment to enhancing our relationship with the emergency responders and safety officers in communities where we operate. Thus we encourage the distribution of this newsletter to others in your field.
In the next issue of “Aware”, we will further explore the differences between CO2 pipelines and those that transport the more well-known commodity, natural gas.
Denbury Resources: Overview of Company Operations
Denbury Resources Inc., is a growing domestic oil and natural gas company headquartered in Plano, Texas. As of December 31, 2013, our proved oil and natural gas reserves were estimated at 470 million barrels of oil equivalent, of which 83% is oil. Our primary focus is on enhanced oil recovery utilizing carbon dioxide (CO2 EOR), and our operations are focused in two key operating areas: The Gulf Coast and Rocky Mountain regions. Currently our properties in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region in Montana, North Dakota and Wyoming. Our goal is to increase the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to CO2 EOR. To date, our CO2 EOR operations have resulted in the gross production of over 100 million barrels of otherwise stranded oil, increasing domestic oil production and subsequently promoting our nation’s energy independence.
Out of our 1,501 employees, 807 are engaged in field operations. Our people are truly our most important asset, and in our opinion among the most qualified and experienced in the oil and gas industry. To ensure the safety of our employees and those within the communities in which we operate we have added key personnel to advise and manage the continued improvement of our training. Our workforce is qualified to perform pipeline safety related tasks and are routinely evaluated under the vigilant oversight of the US Department of Transportation (DOT). In addition to meeting the standards established by the DOT, we undergo regular compliance audits of our operations, and assess emergency response preparedness through various training exercises.
Aside from achieving regulatory compliance, we strive to go the extra mile to establish a solid working relationship with communities in the areas where we conduct our operations. More than simply “doing the right thing”, we listen to our constituents, and seek to anticipate issues so that we may offer solutions and options to resolve problems and minimize impacts
Denbury’s Repeatable Process:
Carbon Dioxide Enhanced Oil Recovery (CO2 EOR)
At Denbury we are an industry leader in using carbon dioxide to generate oil production. Utilizing an innovative and repeatable process, Denbury is able to recover additional oil from subsurface oil reservoirs, as well as provide a promising method to safely store industrial CO2 which may have otherwise been released into the atmosphere.
The first step in implementing a CO2 EOR project is to secure access to substantial volumes of CO2. We source our CO2 from both naturally occurring underground reservoirs and anthropogenic (man-made) sources. CO2 reserves associated with our naturally occurring sources are located in Jackson Dome, Mississippi and LaBarge Field in Wyoming.
In 2013 we began purchasing and utilizing anthropogenic CO2 from industrial facilities which capture, purify, dry and then compress the CO2 for delivery into our pipeline network. The second step is to dispatch the CO2 from various sources to our oil fields. The CO2 is transported in liquid form at high pressures via over 1,100 miles of federally regulated pipelines which are either owned or operated by Denbury.
Once the CO2 is delivered, it enters the third step of our enhanced recovery process where it is injected into the oil-bearing reservoir. The injected CO2 moves through the reservoir mixing with the oil and reducing the surface tension between the oil and the formation, increasing mobility of the trapped oil. The combined mixture can then be more effectively driven towards a producing well-bore. This recovery process allows for additional production of oil that would otherwise be left behind. The final step of our repeatable process is to separate the CO2 and oil mixture through an assembly of processing stages which take place within our on-site recycle facilities. Once the oil is separated from the CO2, it is sold to a third party. The separated CO2 is then re-compressed and prepared for re-injection into the oil bearing reservoir. After the initial cycle is completed, subsequent injections utilizing the recycled CO2 will take place until the reservoir is no longer economically able to produce additional volumes of oil. After the CO2 EOR process is complete, the CO2 is stored in the same formation that had previously trapped the recovered oil. This innovative technology allows Denbury an environmentally responsible method of transporting and storing CO2 volumes in oil reservoirs while having the ability to contribute to our nation’s supply of oil at the same time.
Overview of Company Procedures for Damage Prevention
Denbury’s damage prevention program includes comprehensive procedures and a variety of methods to ensure safe operations of our pipeline systems. We design, install, test, operate, and maintain our pipelines to meet or exceed regulatory standards. Our employees are thoroughly trained to maintain and operate the systems safely, and we are proud of our safety record.
Denbury operates carbon dioxide and natural gas pipelines in Wyoming, Montana, Texas, Louisiana, Mississippi, and Alabama. We take our responsibility seriously to ensure safe pipeline operations, but you too can play an important role in helping to prevent pipeline accidents. The Federally mandated “Call Before You Dig” number, 811 is the national one-call number for damage prevention of underground utility infrastructure. Coordinated by the Common Ground Alliance (CGA), 811 provides national coordination for all notifications of excavation work. When someone calls 811 with the intent of conducting an excavation activity (including digging, blasting, or drilling), they are automatically transferred to the appropriate state one-call agency who collects information concerning the location of the planned work. Nearby utilities and pipeline operators such as Denbury are then notified so they can mark their assets, and if needed, assist in coordinating a safe excavation. Once Denbury receives notification of planned excavation activity, trained and qualified personnel are dispatched to locate and mark the area. Anytime the pipeline must be exposed or crossed, Denbury personnel need to be on site to supervise the activity and ensure safety.
Regular aerial patrols, as well as ground patrols, are conducted along Denbury’s pipeline assets to ensure safety, and to identify excavation activity that may encroach on the pipeline right-of-way. Any issues that are discovered through these observations are quickly investigated and mitigated.
Denbury has a long standing commitment to safety. We consider the members of the emergency response community to be our partners, and we ask for your assistance in notifying the public of the importance of calling 811.
How to Recognize a Pipeline Emergency
While pipeline emergencies are not common, it is prudent for emergency responders to be able to recognize a potential pipeline emergency. Pipeline emergencies include any of the following: a weakened, damaged, or leaking pipeline, a natural disaster such as an earthquake, flood, or soil erosion, or a fire or explosion near or directly involving a pipeline facility.
Depending on the product being transported by the pipeline, the signs of a potential leak may vary; here are some fairly common general indicators of a potential problem:
Upon discovery of a pipeline emergency, it is critical to leave the area immediately. Once in a safe location, notify the pipeline operator and call 911. Above-ground pipeline markers contain information identifying the operator and a telephone number to immediately connect with company personnel who can initiate emergency response procedures.
In the event of a pipeline emergency, first responders should take steps to isolate the area, deny entry, and evacuate any individuals that may be in the hazard area. Elimination of all potential ignition sources, including motorized vehicles and equipment, electrical systems, open flames, radios, cell phones, appliances, and any other devices that could generate a spark should be removed as well. Once Denbury receives notification of a suspected pipeline emergency, we will promptly dispatch personnel to the scene to assist public sector emergency responders. All pipeline operations personnel are trained for emergency preparedness and are required to follow the company’s procedures during emergency situations.
Denbury has a long-standing commitment to the highest standards for the safety of our employees, contractors, local communities, as well as the protection of the environment in which we live and work. To accomplish these goals, we believe Denbury must continuously improve the safety, well-being and development of our employees, implement the highest standards of environmental protection and ethical conduct, and work proactively to be a good corporate citizen by aligning our interests as a company with the interests in the communities in which we operate.
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Our oil and natural gas properties are concentrated in the Gulf Coast and Rocky Mountain regions of the United States.
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Our primary focus is on enhanced oil recovery utilizing carbon dioxide (CO2EOR). Our goal is to increase the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to tertiary recovery operations.
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